Oil prices slide as US-Iran deal set to reopen vital Strait of Hormuz
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In the Strait of Hormuz attack, a Cyprus-flagged container ship was hit by Iran and suffered “significant engineroom damage. All of the crew, including a missing member, were Indian nationals. File photo

Tehran retaliates after US strikes Iran; India condemns attack on ship near Oman

Iran fires back at Gulf nations hosting US forces and declares Hormuz closed, threatening to derail ceasefire talks; India calls for immediate de-escalation


Early Sunday morning (July 12), the United States launched retaliatory strikes against Iran following an Iranian attack on a cargo vessel in the Strait of Hormuz. The initial strike left the container ship engulfed in flames and forced its crew to abandon ship.

In a swift escalation, Iran retaliated by targeting multiple Gulf nations—including Bahrain, Kuwait, Qatar, and Oman—casting a shadow of doubt over ongoing efforts to secure a permanent ceasefire to a conflict that has raged since February 28.

The strait, a key transit route for oil and natural gas, has become the key sticking point in negotiations, and repeated fighting over the past week has left negotiations in danger of collapse.

Indian sailor missing, 10 rescued

Meanwhile, India on Sunday condemned the attack on a merchant vessel with 11 Indian nationals on board off the coast of Oman, stating that the targeting of civilian shipping and infrastructure in the region must end.

Ten Indian nationals have been rescued while one is reportedly missing, the Ministry of External Affairs (MEA) said.
"We condemn the attack on the commercial vessel GFS Galaxy off the coast of Oman, earlier today. Of the 11 Indian nationals on board, 10 have been rescued so far, while 1 Indian National is reportedly missing," it said in a statement.

US attack on Iran

The US military's Central Command said it hit some 140 targets in Sunday's strikes, far more than in the two previous rounds of attacks, and went after missile and drone launch sites, ammunition dumps, communication equipment and other sites. It said the attacks would weaken Iran's ability to threaten civilian shipping.

“Iran made a poor choice. Now they pay,” US Defence Secretary Pete Hegseth wrote online.

The US has launched three rounds of airstrikes targeting Iran in the last week over Iranian attacks on ships heading through the strait using a route seeking to avoid the Islamic Republic's territorial waters.

Tehran's answer

Iran retaliated by attacking nations in the region hosting US military forces, while insisting it alone must control the strait and potentially charge vessels for travelling through it.

“The era of one-sided deals is OVER,” Mohammad Bagher Ghalibaf, the speaker of Iran's parliament and a main negotiator, wrote Sunday. “We told you: keep your word or pay the price. Reality is knocking.”

About a fifth of all traded oil and natural gas passed through the Strait before the war began. Iran's grip on it during the war led to a global energy crisis, though oil prices have sharply dropped since wartime highs of USD 120 a barrel.

India condemns attack

Iran also made a series of claims about attacks elsewhere that were not immediately confirmed.

In the Strait of Hormuz attack, a Cyprus-flagged container ship was hit by Iran and suffered “significant engine room damage” and a civilian crew member was missing, US Central Command said early Sunday morning.

All of the crew, including the missing member, were Indian nationals, according to India's Ministry of External Affairs.

The MEA said the Indian embassy in Oman is closely monitoring the situation and proactively coordinating with the Omani authorities in the ongoing search and rescue operation. "We thank the Omani authorities for their support." It said the continuing incidents of attacks on commercial shipping in the region are "deeply worrisome".
"We reiterate our call for immediate de-escalation of tensions, and the conclusion of ongoing negotiations for a diplomatic solution so that peace and stability can return to the region," the MEA said.
"The targeting of commercial shipping and civilian infrastructure in the region must end, and free and unimpeded navigation and commerce through the international waterways in the region, in keeping with international law, must be restored at the earliest," it said.

The United Kingdom Maritime Trade Operations centre, overseen by the British military, said the ship had been travelling on a route hugging the shoreline of Oman. That's been the way ships have entered and exited the Persian Gulf while avoiding Iranian territorial waters.

Strait of Hormuz closed

Iran's paramilitary Revolutionary Guard said multiple vessels “disregarded our warnings and instructions to correct their course and proceed along the approved route.” One of them “was struck by a warning shot and brought to a stop”.

Iran said that the Strait would remain closed “until further notice” and said it would consider targeting “additional enemy bases in the region” if it faced more attacks.

Iranian state media reported US strikes across swathes of the entire country, including southern Iran in the province closest to the Strait of Hormuz, and military sites in a province near Tehran.

Gulf Arab nations hit

Missile alerts sounded across several Gulf Arab nations early Sunday morning.

Qatar's military said it intercepted incoming Iranian fire, with explosions heard in the neighbouring United Arab Emirates. Three people, including a child, were wounded as a result of falling shrapnel from the interception of Iranian attacks, Qatar's Interior Ministry said, giving no further details on their conditions.

Meanwhile, missile alerts sounded for the third time on Sunday in Bahrain, an island kingdom in the Persian Gulf home to the US Navy's 5th Fleet. Kuwait's military also said it was intercepting incoming fire.

The Omani state news agency said drones struck sites in northeastern Oman, in the area that sits on the Strait of Hormuz. Iran had previously claimed attacks on Oman. The attack came after the two countries held talks on Saturday.

Sirens also sounded in the United Arab Emirates, but the government said missiles did not cross into UAE borders. The UAE so far hasn't been targeted in the most recent round of Iranian attacks.

The last attack on the Emirates, home to Abu Dhabi and Dubai, came in May when a drone sparked a fire on the edge of the country's sole nuclear power plant.

Tussle over the strait

The latest violence comes after Iran and Oman's foreign ministers' meeting on Saturday to discuss the strait. The narrow strait sits in both Iran and Oman's territorial waters, but has long been considered an international waterway.

Oman said it and Iran agreed to continue discussing the Strait of Hormuz “at the technical and political levels”.

However, Iran offered no statement about the strait being open to all — something sought by the Trump administration.

US President Donald Trump suggested last week that an interim deal in the Iran war was “over”. But mediators, including Pakistan, Qatar and Egypt, have continued efforts to reach an agreement.

Iran's revenge

Iran's new supreme leader, still unseen since the war began, also vowed in his first statement since the funeral of his father, Ayatollah Ali Khamenei, that Iranians would avenge his killing in the war's opening strikes on Feb 28.

Such revenge “is the will of our nation and must certainly be carried out,” Supreme Leader Ayatollah Mojtaba Khamenei said in a statement carried on state television.

US officials, speaking Friday on condition of anonymity about the current situation with Iran, said the resumption of strikes even before the latest round came as a result of what they described as a rogue faction of Iranian hard-liners who were trying to sabotage the ceasefire. Iran has insisted its theocracy is unified under the new supreme leader.

The strikes in Iran over two rounds of strikes last week killed at least 17 people and wounded 115 others, Iranian Health Ministry spokesperson Hossein Kermanpour said.

(With inputs from agencies)

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